Twitter's revenue growth has a bright spot amid issues with user growth and engagement. But when Twitter unveiled its conservative but "accurate" guidance following the third quarter in October 2014, it snapped the last thread that was holding up its valuations, and that's probably the biggest reason why Twitter's stock is down nearly a quarter since then. That's just the latest issue for the company's stock.
The company's top brass might have stood up for its CEO Dick Costolo after a number of prominent voices have called for his replacement, but the embattled executive isn't breathing easy yet. After its much celebrated IPO and the spirited rally that followed, Twitter has lost nearly half its market cap in a little over a year.
Since IPO, problems have compounded for the microblogging site, which initially came under fire for its slow user growth; questions have been raised about Twitter's scalability; and Twitter's engagement metrics haven't been too encouraging either.
Twitter User Growth: Still LacklusterEver since its first earnings release as a public company, Twitter's user growth has always been a source of concern, and in spite of a few encouraging upticks, the overall trajectory has been disappointing. The graph shows Twitter's absolute user addition on a quarterly basis and its quarter-over-quarter growth rates.